The fourth of six defendants in a $60 million tax fraud conspiracy case has been sentenced to more than 17 years in prison for his role.
U.S. District Judge Charles R. Norgle sentenced Timothy Shawn Dunn, of Chesterton, Ind., to a term of 210 months. Prior to his conviction in May 2008, Dunn owned Moneyfacts, a financial advisory business in Highland, Ind. Dunn and his co-defendants were found to have carried out a nearly decade-long scheme to market and sell sham domestic and foreign trusts through the now-defunct Aegis Co., of Palos Hills, Ill., to about 650 wealthy taxpayer clients. They used a network of promoters, sub-promoters, managers, attorneys and accountants to promote the trusts.
In addition to the prison term, Judge Norgle also sentenced Dunn to three years of supervised release. Dunn also remains liable for approximately $315,000 for his own unpaid taxes, plus penalties and interest owed. In addition to the tax fraud conspiracy, Dunn was found guilty of and sentenced on 11 counts of aiding and assisting in the filing of false returns, one count of personal income tax evasion and two counts of filing false personal income tax returns.
Dunn and his five co-defendants were convicted following an 11-week trial. The defendants were indicted in 2004, following a lengthy undercover investigation by IRS agents, code-named "Operation Trust Me," and the seizure of roughly 1.5 million documents, computer files and related materials. Nationwide, the Chicago-based investigation has resulted in convictions of more than 30 defendants and charges against approximately 30 other defendants around the country, including in Florida, Illinois, New York, Ohio and West Virginia.
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